FATCA

The Foreign Account Tax Compliance Act (FATCA) is a United States federal law designed to combat tax evasion by U.S. taxpayers with respect to their income received through financial instiutitons outside the United States. U.S. taxpayers, regardless of their residence, include:

  • U.S. citizens;
  • U.S. corporations; and
  • U.S. tax residents.

Criteria for Classification of NSD’s Clients as a Foreign Taxpayer

To achieve the primary objective of FATCA, which is control over U.S. taxpayers’ financial accounts, all financial and non-financial institutions must:

  • identify their clients (both U.S. and non-U.S. entities and individuals); and
  • report to the U.S. Internal Revenue Service (IRS) information about U.S. tax residents’ investments and income, as well as about persons refusing to submit information for identification purposes, and non-participating entities.

Process participants:

  1. U.S. financial institutions;
  2. Foreign financial institutions; and
  3. Non-financial foreign entities.

FATCA provisions require that financial institutions enter into an agreement with the IRS by registering on the IRS portal. National Settlement Depository (NSD) has registered with the IRS as a Participating FFI and been assigned the following Global Intermediary Identification Number (GIIN): XNBBND.00000.LE.643. NSD is also registered as a Lead FFI for the Moscow Exchange Group.

As NSD has undertaken to fully comply with the FATCA requirements, NSD’s clients are required to:

  1. Complete a FATCA identification details form (a “FATCA Details Form”);
  2. Submit any further documents, if so requested; and
  3. Give consent to the disclosure of information to a foreign tax authority*.

The above requirements apply to all clients who enter into the following agreement types:

  • Bank account agreement
  • Owner securities account agreement
  • Interdepository securities account agreement
  • Trustee securities account agreement
  • Foreign nominee securities account agreement
  • Treasury securities account agreement

A failure to comply with the FATCA requirements may result in adverse consequences: failure to enter into agreement, termination of the agreement with a client and closure of the client’s account or the imposition of 30% tax on U.S. source income, and consequently on gross payments from the United States and transit payments.

* — In accordance with Russian Federal Law No. 173-FZ dated 28 June 2014, NSD’s clients are required to give their consent to the disclosure of information to a foreign tax authority if no such consent is given, NSD may reject any transactions or, in certain circumstances, terminate the financial services agreement. By submitting a duly completed FATCA Details Form to NSD, a client who is a foreign taxpayer gives his consent to the disclosure of information (including such details as account numbers, account balances, and account transactions) to a foreign tax authority and/or to a foreign withholding agent authorized by a foreign tax authority to withhold foreign taxes and charges in accordance with the Russian laws.

Description of the Identification Process for FATCA Purposes:

New clients

  1. On Moscow Exchange’s web site at http://moex.com/en/fatca, the client shall complete an electronic FATCA Details Form and save it as a zip file [‘Receive a Zip File’ button].
  2. On the said site, the client shall print out a hard-copy FATCA Details Form [‘Printable Version’ button] and cause it to be signed by client’s authorized persons.
  3. If in the course of completing the FATCA Details Form, it is required to complete and submit any further documents (in particular, W-9 or W-8 Forms), the client shall print out necessary forms directly from the FATCA Details Form or from the IRS web site, complete such forms, and cause them to be signed by client’s authorized persons, following which the client shall attach the scanned file (it is recommended to save files in the PDF format).
  4. The hard-copy FATCA Details Form, along with the documents required for entering into an agreement, shall be submitted to NSD’s Contract Department (tel.: +7 (495) 956-27-89, when prompted, press 1).
  5. The electronic FATCA Details Form saved as a zip file shall be sent to NSD either by e-mail ( ), or (on a magnetic media) by courier service (such as DHL).
  6. If NSD discovers any error in the FATCA Details Form or any additional documents, or if any document is found to be inaccurate, NSD shall return the FATCA Details Form to the new client.
  7. If any changes have to be made in the FATCA Details Form submitted earlier, the client may download the relevant zip file on Moscow Exchange’s web site, make the necessary changes in the FATCA Details Form, and then shall follow the process described above.
  8. If the FATCA Details Form and the additional documents are found to be accurate, NSD shall deliver to the client a hard-copy notification stating the FATCA status assigned to the client.

Existing clients

  1. On Moscow Exchange’s web site at http://moex.com/en/fatca, the client shall complete an electronic FATCA Details Form and save it as a zip file [‘Receive a Zip File’ button].
  2. If in the course of completing the FATCA Details Form, it is required to complete and submit any further documents (in particular, W-9 or W-8 Forms), the client shall print out necessary forms directly from the FATCA Details Form or from the IRS web site, complete such forms, and cause them to be signed by client’s authorized persons (a link to the additional section “Document Signing Requirements”), following which the client shall attach the scanned file (it is recommended to save files in the PDF format).
  3. The client shall send to NSD FATCA Details Form (the zip file) by following means:
    • via Louch system: it is necessary to select Documents\Create\FATCA Details Form, to attach the zip file (field File Name) and send the document to NDC000000000 using standard functions of Louch system.
    • via WEB-Service: it is necessary to rename the zip file according to EDI Rules, to sign the zip file with the digital signature (with the scope of the signature key certificate being “Electronic data interchange with NSD”) and deliver the file to NSD using WEB-Service as a standard EDI package.  
    • via SWIFT FileAct Store-and-Forward service: it is necessary to send the zip file without digital signature.
  4. If NSD discovers any error in the FATCA Details Form or any additional documents, or if any document is found to be inaccurate, NSD shall send the client a Notification of the FATCA Details Form Processing stating the reason why FATCA Details Formwas not accepted by NSD.
  5. If the FATCA Details Form and the additional documents are found to be accurate, NSD shall deliver to the client a Notification of the FATCA Details Form Processing1 stating the FATCA status assigned to the client. If the FATCA Details Form has been submitted to NSD via SWIFT FileAct, the Notification will also be sent to the client via SWIFT FileAct.
  6. If any changes have to be made in the FATCA Details Form submitted earlier, the client may download the relevant zip file on Moscow Exchange web site, make the necessary changes in the FATCA Details Form, and then shall follow the process described above.

    Please note that clients are required to give notice to NSD in the event of any changes in the details submitted in the FATCA Details Form or in any additional documents. For this purpose, the client has to re-complete the FATCA Details Form.

    1 – The format and specifications of the Notification are described on NSD’s official web site, Electronic Data Interchange page, in Appendix 3 (Section “Specifications of Functional Electronic Documents in the NSD’s EDI System”).
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